Audit controversy grows at MyTravel
Despite switching audit firms, MyTravel was still audited by the same partners from Andersen, the firm that was swallowed up by Deloitte & Touche in August.
According to the Evening Standard, the two auditors who approved MyTravel’s aggressive accounting regime in the years when Andersen was auditing its books are the same people that have now insisted on the reappraisal of its numbers.
The move has caused the travel company’s share price to tumble, amid concerns over a £50m hole in the company accounts.
An earlier profits warning forced the company’s chief executive, former finance director Tim Byrne, to resign two weeks ago.
Now pressure is mounting on current FD David Jardine to go – Jardine used to work for Andersen before taking over at the embattled travel company.